Innovation processes can be regarded as complex, dynamic, and a result of cumulative dynamic interaction and learning processes involving many actors. In this setting, private small-and medium-sized businesses (SMEs) can be considered a key factor -as generators of new ideas, as entrepreneurs carrying out new ventures, and as partners for other local actors.This study focuses on the SME networks and their ability to participate in innovative processes directed at new value creation. We present a case study of the development of a young innovation network. Our focus in the case study is on the SME's ability to carry out innovation and new value creation in a network. The key contribution of the study centers on the new understanding of the way SME innovation could be promoted through facilitated network development.

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Social empowerment of the participants/future employees of the social enterprise formed the important, intangible capital in this case. By definition, the core of social enterprises is the customer- and employee-driven nature. This study clarifies how a social enterprise functions as a laboratory of social innovation at the local and community levels.

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